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White-Label Applications: How to Sell More With the Same Effort

2019/12/13 by Egor Kaleynik
7 min read
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White-labeling your mobile app can be beneficial in certain cases. We share what it means and how it can help your business to lower costs, eliminate risks and attract more clients.

What’s a White-Label App?

In the world of software, developing a product means high complexity, high risks, and heavy spendings, coupled with highly unclear results. That’s why the white label model looks good in various situations here. For example, a software development company has developed a niche analytical system. A research company, working within that niche, might win from buying the system, branding it and offering its clients useful reports, created in the system.

This holds true for mobile apps, as well. There are hordes of different apps already developed worldwide. And often there’s no need to develop one from scratch. All it takes is to find the vendor owns the appropriate one. And sell that vendor on an idea to slightly customize, reassemble, and give it a new brand. 
White label, private label, house brand are rather similar concepts. Generally, it means a business model where manufacturer, developer or a service provider (so-called OEM) make unbranded goods or services and then sell those to multiple buyers who give their own brands and resell the products again. 

As a result, OEM arranges the sales process without any marketing costs and vendors come up with their own branded goods or services without a need to produce them. A good example is the Great Value groceries in Walmart stores, that are manufactured by third-party companies exclusively for this retail chain.

Benefits of White Label Apps Approach for Different Parties

For Vendors

As it was said before, the software development process from scratch holds many bottlenecks. Even for software development companies, it is highly likely complex, and surely rather expensive. For those who have no relevant past experience, it’ll surely have many unexpected issues, which may easily result in a failure eventually.

In contrast, a white-label app already has proven and clearly defined features and functionalities. You don’t need to take on many risks since they’ve already been dealt with by the developer. The process of app customization gets much faster. And, of course, your costs go down too.

Case study

iOS+Android Native Apps from Scratch vs. White Label

The team with Geek-Solutions has delivered the full-cycle development services for the app operating with both iOS and Android featuring the complex back-end architecture. Subsequently, this app was reassembled and branded for different vendors several times. Our team sees huge savings in terms of costs and time comparing full-cycle and white-label development pipelines.

Back-end development - 2 devs for 6 months; iOS app - 2 devs for 2 months; Android app - 2 devs for 2.5 months; QA - 1 engineer for 1.5 months; bug-fixing - 1 back-end for 0.5 months, 1 iOS for 1 week, 1 Android for 2 weeks; delivery and UAT - 1 DevOps engineer for 1 week. 24 man-months approx. Total: 9 months duration.

Application clone deployment - 1 dev for 1 day, business rules reconfiguration - 1 dev for 1 day, iOS app rebranding - 1 dev for 3 days, Android app rebranding - 1 dev for 3 days, QA - 1 engineer for 4 days, deployment - 1 DevOps engineer for 1 week. 0.75 man-months approx. Total: 2 weeks duration.
 
This was a pretty unique case. It included a long and complex back-end development process, as well as a fast and easy reconfiguration. As a rule, we see the difference of no more than seven times between the two pipelines.

The result
difference of
7
times

For OEM Developers

Why not sell apps under their own brand or to develop apps from scratch exclusively for each new client? The question is not so easy as it might seem from the first sight.

The global custom software development market changes at a fast pace. More and more niches are becoming fully covered by ready-made software solutions. That’s why the custom development slightly evolves into enterprise-only service, where efficiency is essential and price concerns are secondary.

For those companies who work with SME, it’s important to keep their offerings competitively priced continuously. As you can see, selling ready-made apps under different brands is a path to competitiveness.

Another situation where white-labeling is rather acceptable is an unwillingness to cover escalating marketing costs. Selling apps under the partner’s brand is a way to undertake marketing duties on the partner’s shoulders.

White Label Apps: Potential Bottlenecks You Should Consider

Mobile apps branded for different clients are fraught with some possible issues.

What’s Our Role in White-Label App Dev?

You might have noticed that Geek-Solutions LLC is staying apart from these two roles. Let me explain what role we take on with regard to the white-label development process.

Leveraging the extensive experience in OEM apps customization, we can provide these services with the high quality guarantees in place. We know how to do it fast and with fewer possible issues. Moreover, if the vendor looks for a contractor who’s ready to cover its support questions, we are able to help with it, as well.

FINALLY

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If you try to compare in mind on-site coverage and outsourcing of these processes, stop to agonize over it. Just fill in the form below and we’ll schedule a call to help you figure out all the economic aspects. Naturally, the call will be free of charge and we’ll answer any questions you might have with regard to the white-label app development.